Roles of Gold Fluctuation in India

Undoubtedly gold is the most believed entity for investors and commoners that provide security under difficult financial situations. However, there could arise an uncertain scenario where gold prices fluctuate regularly. Such conditions shall have a considerable impact on a nation’s economy. Many factors such as economic policies, geopolitical tension, increasing or decreasing value of the rupee against the dollar, and supply and demand are responsible for gold price fluctuation.

Why Does the Price of Gold Fluctuate?

The gold rate fluctuates globally as it is the most consumed metal worldwide. Indeed, the Indian population considers gold price fluctuation quite seriously as its traditional investment value keeps increasing regularly. If the currency value hits hard against the dollar, it should be perceived as directly impacting the import price. Consequently, such fluctuation decreases the gold value until the market scenario settles.

Significant Causes of Gold Fluctuation

The causes of gold price fluctuations also include the change in import duty. Since the gold demand in India keeps increasing, the import duty needs to be monitored regularly.

The possible condition affecting gold rate fluctuation also includes interest rates. The gold rate is directly linked with interest rates as both are inversely proportional to each other. If the interest rate falls, the gold price demand increases and vice versa. At Bhima Gold Private Limited, we understand the value of the customer and educate them about gold fluctuation types. 

Safe Box

We know how inflation plays a significant role in today’s economic conditions. Gold preserves its value whenever inflation increases against the fall of currency value. Our gold assessment team has an insight into the volatility of physical assets under unforeseen circumstances. Therefore, we underline the preference for gold’s inherent economic value during good and bad times. This helps many people prioritize the purchase of gold, predicting the growth or decline of the domestic economy. You can check our Jewellerypurchase plan that offers that keeps your purchased gold in the safe box during such conditions. i.e, you can be rest assured about the value of the gold when currency value goes through a phase.   

Gold for Rural Economy

Bhima Gold categorically rolls out offers upon considering the demand for gold in India for the rural economy. For instance, the demand for yellow metal increases primarily during monsoon seasons when farmers tend to sell/buy their physical assets. Statistically, the average Indian population consumes close to 750-850 tons of gold annually. The calculation indicates that 60 percent of the country’s family asset depends on gold. If the crops were in good condition, they’d buy gold. But if the monsoon conditions do not favor it, they will sell gold to generate funds. Thus, the demand and supply circle for gold continues to make an impact in the market.

Wedding Season and Gold Rate Fluctuation

The demand for gold during wedding seasons in India. While many families would have gone for an investment plan with us, we have customers flooded during wedding seasons. Interestingly, the impact of gold price fluctuation did not seem to bother wedding season buyers. The intensity of investing in gold increases during March-July & October-February, the two major wedding seasons in India.

​